• Washington Trust Bancorp, Inc.
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  • Washington Trust Reports First Quarter 2016 Earnings
    Company Release - 04/27/2016 08:12

    WESTERLY, R.I., April 27, 2016 (GLOBE NEWSWIRE) -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $10.9 million, or $0.64 per diluted share, for the first quarter of 2016, up from net income of $10.7 million, or $0.62 per diluted share, reported for the fourth quarter of 2015. 

    "Washington Trust continued to post solid earnings in the latest quarter," stated Joseph J. MarcAurele, Washington Trust Chairman and CEO.  "We recently opened a new retail branch on the East Side of Providence, Rhode Island, and have selected a site, and are awaiting regulatory approval, for a new mortgage banking office in Wellesley, Massachusetts.   Our market expansion efforts, along with the continuing strength of our commercial, retail, mortgage banking and wealth management business lines, will help us to continue to achieve favorable results in future periods."

    Selected highlights for the first quarter of 2016 include:

    • Returns on average equity and average assets were solid at 11.50% and 1.16%, respectively.  Comparable amounts for the fourth quarter of 2015 were 11.52% and 1.16%, respectively.
    • Total loans stood at $3.0 billion at March 31, 2016, up by 1.1% in the quarter.  Total loans were up by 5.8% from a year ago.
    • Total deposits amounted to $2.9 billion at March 31, 2016, down by 1.9% in the quarter and up by 3.5% from a year ago.
    • In March, Washington Trust declared a quarterly dividend of 36 cents per share, representing a $0.02 per share increase over the previous quarter and the sixth consecutive year of dividend increases.

    Net Interest Income
    Net interest income totaled $27.7 million for the first quarter of 2016, up by $1.5 million, or 6%, from the fourth quarter of 2015.  The net interest margin was 3.24% for the first quarter of 2016, up 16 basis points from the previous quarter.  Commercial loan prepayment fee income, which is included in net interest income, amounted to $1.0 million in the first quarter of 2016, compared to $73 thousand in the prior quarter.  A significant portion of the latest quarter prepayment fee amount was attributable to one relationship.  Excluding the loan prepayment fee income in each  period, the first quarter net interest margin was 3.13%, up by 6 basis points on a linked quarter basis.  This increase also reflects a modest benefit resulting from the increase in the short-term borrowing rate announced by the Federal Reserve in December 2015.  Other significant linked quarter changes included:

    • Average interest-earning assets increased by $60 million, largely due to growth in average balances of commercial loans.  Loan prepayment fee income contributed 12 basis points to the yield on interest-earning assets in the first quarter of 2016, compared to 1 basis point in the prior quarter.  Excluding the impact of prepayment fee income in each period, the yield on interest-earning assets was 3.72% for the first quarter, compared to 3.67% in the prior quarter.
    • Average interest-bearing liabilities rose by $70 million, reflecting increases in average wholesale funding balances.  The cost of interest-bearing funds was 0.74%, unchanged from the previous quarter.

    Noninterest Income
    Noninterest income totaled $14.6 million for the first quarter of 2016, down by $512 thousand, or 3%, from the fourth quarter of 2015.  Significant linked quarter changes included:

    • Wealth management revenues totaled $9.2 million for the first quarter, in-line with the previous quarter.  Wealth management assets under administration amounted to $5.9 billion at March 31, 2016, up by $34 million, or 1%, on a linked quarter basis.  Managed assets represented approximately 92% of total wealth management assets at March 31, 2016.
    • Mortgage banking revenues totaled $2.2 million for the first quarter, down by $384 thousand, or 15%, on a linked quarter basis, reflecting a lower volume of loan sales sold to the secondary market.  Residential mortgage loans sold to the secondary market amounted to $106.0 million in the first quarter, compared to $127.4 million in the previous quarter.
    • Loan related derivative income amounted to $645 thousand in the first quarter, down by $107 thousand, or 14%, from the prior quarter.

    Noninterest Expenses
    Noninterest expenses totaled $25.5 million for the first quarter of 2016, up by $889 thousand, or 4%, from the prior quarter.  Included in noninterest expenses for first quarter of 2016 was $431 thousand of debt prepayment penalty expense associated with the prepayment of $10.0 million in FHLBB advances.  Excluding the debt prepayment penalty expense, noninterest expenses were up by $458 thousand, or 2%, from the fourth quarter.  Salaries and employee benefit costs, the largest component of noninterest expenses, increased by $327 thousand from the prior quarter, reflecting an increase in payroll taxes associated with the start of the new calendar year.

    Income tax expense amounted to $5.5 million for the first quarter of 2016, up by $138 thousand from the amount recognized in the previous quarter.  The effective tax rate for the first quarter of 2016 was 33.4%, compared to 33.2% for the fourth quarter of 2015.

    Loans
    Total loans amounted to $3.0 billion at March 31, 2016, up by $34 million, or 1.1%, from the balance at the end of the fourth quarter.  Significant linked quarter changes included:

    • Total commercial loans increased by $44 million, or 2.7%, including growth of $46 million in the commercial real estate portfolio.
    • The residential real estate loan portfolio declined by $9 million, or 0.9%.
    • Consumer loans decreased by $1 million, or 0.3%.

    Investment Securities
    The securities portfolio amounted to $430 million at March 31, 2016, up by $35 million, or 8.9%, from the balance at December 31, 2015, primarily due to the purchases of $51 million of additional U.S. government agency and agency mortgage-backed debt securities, partially offset by calls, maturities and routine principal pay-downs.  Investment securities were 11% of total assets as of March 31, 2016.

    Deposits and Borrowings
    Total deposits amounted to $2.9 billion at March 31, 2016, down by $55 million, or 1.9%, in the first quarter.  Excluding wholesale brokered time deposits, in-market deposits decreased by $62 million, or 2.3%, in the quarter.  The largest outflow during the quarter was $60 million of money market deposits, attributable to outflows in various institutional and commercial deposits.

    FHLBB advances amounted to $487 million at March 31, 2016, up by $108 million, or 28.6%, from December 31, 2015.  FHLBB advances totaling $10.0 million were prepaid in late March 2016.  The weighted average rate of these advances was 2.72% with a weighted average remaining term of 32 months.  These were replaced with $10.0 million of brokered time certificates of deposits with an 18-month maturity and a fixed interest rate of 0.95%.  Net interest savings of $132 thousand for the remainder of 2016 are expected as a result of the extinguishment of the FHLBB advances.

    Asset Quality
    Total past due loans amounted to $18 million, or 0.60% of total loans, at March 31, 2016, compared to $18 million, or 0.58% of total loans, at December 31, 2015.  Total nonaccrual loans declined from $21 million, or 0.70% of total loans, at December 31, 2015, to $17 million, or 0.57%, at March 31, 2016.

    A loan loss provision totaling $500 thousand was charged to earnings in the first quarter of 2016, compared to a loan loss provision of $750 thousand recognized in the fourth quarter of 2015.  Net charge-offs amounted to $1.4 million in the first quarter of 2016, including a $1.2 million charge-off associated with one commercial real estate relationship.  Net charge-offs for the prior quarter amounted to $842 thousand.  The allowance for loan losses was $26.1 million, or 0.86% of total loans, at March 31, 2016, compared to $27.1 million, or 0.90% of total loans, at December 31, 2015.  The reduction in ratio of the allowance to total loans includes the impact of loan charge-offs for which loss exposure had been allocated prior to the latest quarter.  The loan loss provision was based on management’s assessment of loss exposure, as well as loan loss allocations commensurate with loan portfolio growth in the quarter.

    Capital and Dividends
    Total shareholder's equity was $381 million at March 31, 2016, up by $6 million from December 31, 2015.  Capital levels at March 31, 2016 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.45% at March 31, 2016, compared to 12.58% at December 31, 2015.  At March 31, 2016, book value per share amounted to $22.40, up from $22.06 in the prior quarter.

    The Board of Directors declared a quarterly dividend of 36 cents per share for the quarter ended March 31, 2016, a $0.02 increase from the prior quarter.  The dividend was paid on April 14, 2016 to shareholders of record on April 1, 2016.

    Conference Call
    Washington Trust will host a conference call to discuss its first quarter results, business highlights and outlook on Wednesday, April 27, 2016 at 1:30 p.m. (Eastern Time).  Individuals may dial in to the call at 1-877-407-0784.  An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13634508; the audio replay will be available through May 4, 2016.  Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through June 30, 2016.

    Background 
    Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.  

    Forward-Looking Statements
    This press release contains statements that are “forward-looking statements”.  We may also make forward-looking statements in other documents we file with the SEC, in press releases and other written materials, and in oral statements made by our officers, directors or employees.  You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters.  You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust.  These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

    Some of the factors that might cause these differences include the following: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; additional government intervention in the U.S. financial system; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value of wealth management assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, default and charge-off rates; changes in the size and nature of the our competition; changes in legislation or regulation and accounting principles, policies and guidelines; the ability to fully realize the expected financial results from the Halsey Associates, Inc. acquisition; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

    Supplemental Information - Explanation of Non-GAAP Financial Measures
    In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures.  Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED BALANCE SHEETS (unaudited)
    (Dollars and shares in thousands)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Assets:         
    Cash and due from banks$89,966   $93,222   $106,445   $79,795   $84,842  
    Short-term investments 4,931    4,409    3,629    4,298    4,191  
    Mortgage loans held for sale 22,895    38,554    31,805    37,389    47,117  
    Securities:         
    Available for sale, at fair value 411,352    375,044    323,795    351,378    340,942  
    Held to maturity, at amortized cost 19,040    20,023    21,140    22,523    24,025  
    Total securities 430,392    395,067    344,935    373,901    364,967  
    Federal Home Loan Bank stock, at cost 26,515    24,316    37,730    37,730    37,730  
    Loans:         
    Commercial 1,698,811    1,654,547    1,579,854    1,583,537    1,559,523  
    Residential real estate 1,004,349    1,013,555    1,024,214    1,001,263    987,564  
    Consumer 343,833    345,025    345,850    343,784    333,505  
    Total loans 3,046,993    3,013,127    2,949,918    2,928,584    2,880,592  
    Less allowance for loan losses 26,137    27,069    27,161    27,587    27,810  
    Net loans 3,020,856    2,986,058    2,922,757    2,900,997    2,852,782  
    Premises and equipment, net 29,882    29,593    28,180    28,124    27,839  
    Investment in bank-owned life insurance 66,000    65,501    65,000    64,502    64,009  
    Goodwill 64,059    64,059    64,196    58,114    58,114  
    Identifiable intangible assets, net 11,137    11,460    11,793    4,539    4,694  
    Other assets 71,577    59,365    58,366    55,088    56,229  
    Total assets$3,838,210   $3,771,604   $3,674,836   $3,644,477   $3,602,514  
    Liabilities:         
    Deposits:         
    Demand deposits$539,119   $537,298   $513,856   $457,755   $477,046  
    NOW accounts 394,873    412,602    358,973    357,922    333,321  
    Money market accounts 763,565    823,490    855,858    789,334    821,353  
    Savings accounts 331,800    326,967    305,775    300,108    298,802  
    Time deposits 850,294    833,898    801,818    834,000    852,621  
    Total deposits 2,879,651    2,934,255    2,836,280    2,739,119    2,783,143  
    Federal Home Loan Bank advances 487,189    378,973    381,649    471,321    385,992  
    Junior subordinated debentures 22,681    22,681    22,681    22,681    22,681  
    Other liabilities 67,409    60,307    63,699    52,189    56,819  
    Total liabilities 3,456,930    3,396,216    3,304,309    3,285,310    3,248,635  
    Shareholders’ Equity:         
    Common stock 1,064    1,064    1,062    1,052    1,048  
    Paid-in capital 111,641    110,949    109,724    103,408    102,587  
    Retained earnings 277,810    273,074    268,166    263,790    258,069  
    Accumulated other comprehensive loss (9,235)   (9,699)   (8,425)   (9,083)   (7,825) 
    Total shareholders’ equity 381,280    375,388    370,527    359,167    353,879  
    Total liabilities and shareholders’ equity$3,838,210   $3,771,604   $3,674,836   $3,644,477   $3,602,514  


    Washington Trust Bancorp, Inc. and Subsidiaries
    FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (Dollars and shares in thousands, except per share amounts)         
    Three Months EndedMar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Interest income:         
    Interest and fees on loans $29,998   $28,511   $28,626   $28,739   $28,353  
    Interest on securities:Taxable 2,370    2,262    2,178    2,176    2,259  
     Nontaxable 327    352    366    402    435  
    Dividends on Federal Home Loan Bank stock 210    315    309    164    165  
    Other interest income 64    37    47    29    25  
    Total interest and dividend income 32,969    31,477    31,526    31,510    31,237  
    Interest expense:         
    Deposits 2,968    3,097    3,308    3,348    3,389  
    Federal Home Loan Bank advances 2,152    1,966    1,987    1,891    1,902  
    Junior subordinated debentures 112    157    232    241    241  
    Other interest expense 2    2    2    2    3  
    Total interest expense 5,234    5,222    5,529    5,482    5,535  
    Net interest income 27,735    26,255    25,997    26,028    25,702  
    Provision for loan losses 500    750    200    100      
    Net interest income after provision for loan losses 27,235    25,505    25,797    25,928    25,702  
    Noninterest income:         
    Wealth management revenues 9,174    9,167    8,902    8,912    8,435  
    Mortgage banking revenues 2,198    2,582    1,990    2,741    2,588  
    Service charges on deposit accounts 907    971    986    973    935  
    Card interchange fees 797    810    849    826    714  
    Income from bank-owned life insurance 499    502    498    492    490  
    Loan related derivative income 645    752    327    717    645  
    Equity in earnings (losses) of unconsolidated subsidiaries (88)   (69)   (69)   (69)   (86) 
    Other income 502    431    430    669    299  
    Total noninterest income 14,634    15,146    13,913    15,261    14,020  
    Noninterest expense:         
    Salaries and employee benefits 16,380    16,053    15,971    15,506    15,494  
    Net occupancy 1,807    1,724    1,721    1,669    1,886  
    Equipment 1,501    1,393    1,424    1,376    1,340  
    Outsourced services 1,363    1,337    1,250    1,277    1,247  
    Legal, audit and professional fees 629    825    630    610    676  
    FDIC deposit insurance costs 493    470    467    436    473  
    Advertising and promotion 265    325    356    578    267  
    Amortization of intangibles 323    333    260    156    155  
    Debt prepayment penalties 431                  
    Acquisition related expenses     52    504    433      
    Other expenses 2,258    2,049    1,955    2,258    1,993  
    Total noninterest expense 25,450    24,561    24,538    24,299    23,531  
    Income before income taxes 16,419    16,090    15,172    16,890    16,191  
    Income tax expense 5,484    5,346    4,964    5,387    5,181  
    Net income$10,935   $10,744   $10,208   $11,503   $11,010  
              
    Net income available to common shareholders - basic$10,910   $10,718   $10,181   $11,469   $10,971  
    Net income available to common shareholders - diluted$10,910   $10,718   $10,180   $11,470   $10,971  
    Weighted average common shares outstanding - basic 17,023    17,004    16,939    16,811    16,759  
    Weighted average common shares outstanding - diluted 17,157    17,167    17,102    16,989    16,939  
    Per share information:Basic earnings per common share$0.64   $0.63   $0.60   $0.68   $0.65  
     Diluted earnings per common share$0.64   $0.62   $0.60   $0.68   $0.65  
     Cash dividends declared per share$0.36   $0.34   $0.34   $0.34   $0.34  
              


    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     At or for the Three Months Ended
    (Dollars and shares in thousands, except per share amounts)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Share and Equity Related Data:         
    Book value per share$22.40  $22.06  $21.82  $21.34  $21.10 
    Tangible book value per share - Non-GAAP (1)$17.98  $17.62  $17.36  $17.61  $17.35 
    Market value per share$37.32  $39.52  $38.45  $39.48  $38.19 
    Shares issued and outstanding at end of period 17,024   17,020   16,985   16,834   16,773 
              
    Performance Ratios:         
    Net interest margin (FTE) 3.24%  3.08%  3.07%  3.15%  3.18%
    Return on average assets 1.16%  1.16%  1.11%  1.27%  1.23%
    Return on average tangible assets - Non-GAAP (1) 1.18%  1.19%  1.13%  1.29%  1.25%
    Return on average equity 11.50%  11.52%  11.13%  12.88%  12.54%
    Return on average tangible equity - Non-GAAP (1) 14.34%  14.45%  13.82%  15.62%  15.27%
              
    Capital Ratios:         
    Tier 1 risk-based capital11.56% (i)  11.64%  11.83%  11.79%  11.78%
    Total risk-based capital12.45% (i)  12.58%  12.80%  12.78%  12.80%
    Tier 1 leverage ratio9.31% (i)  9.37%  9.26%  9.31%  9.21%
    Common equity tier 110.82% (i)  10.89%  11.05%  11.00%  10.98%
    Equity to assets 9.93%  9.95%  10.08%  9.86%  9.82%
    Tangible equity to tangible assets - Non-GAAP (1) 8.13%  8.11%  8.18%  8.28%  8.22%
    (i) - estimated         
              
    Wealth Management Revenues:         
    Trust and investment management fees$8,065  $8,001  $7,768  $7,238  $7,142 
    Mutual fund fees 843   952   989   1,032   1,036 
    Asset-based revenues 8,908   8,953   8,757   8,270   8,178 
    Transaction-based revenues 266   214   145   642   257 
    Total wealth management revenues$9,174  $9,167  $8,902  $8,912  $8,435 
              
    Wealth Management Assets Under Administration:         
    Balance at beginning of period$5,844,636  $5,714,201  $5,211,548  $5,159,663  $5,069,966 
    Acquisition of Halsey Associates, Inc. (Aug. 1, 2015)       839,994       
    Net investment appreciation (depreciation) & income 22,389   153,953   (316,121)  (13,932)  80,872 
    Net client cash flows 11,942   (23,518)  (21,220)  65,817   8,825 
    Balance at end of period$5,878,967  $5,844,636  $5,714,201  $5,211,548  $5,159,663 
              
    Mortgage Banking Revenues:         
    Gains and commissions on residential loan sales, net$2,134  $2,528  $1,964  $2,748  $2,585 
    Residential mortgage servicing fee income, net 64   54   26   (7)  3 
    Total mortgage banking revenues$2,198  $2,582  $1,990  $2,741  $2,588 
              
    Residential Mortgage Loan Originations:         
    Originations for retention in portfolio$47,545  $38,080  $76,963  $65,134  $54,675 
    Originations for sale to the secondary market (2) 90,458   134,125   126,353   134,360   128,996 
    Total mortgage loan originations$138,003  $172,205  $203,316  $199,494  $183,671 
              
    Residential Mortgage Loans Sold:         
    Loans sold with servicing rights retained$26,454  $44,493  $37,782  $32,693  $47,256 
    Loans sold with servicing rights released (2) 79,507   82,906   94,645   110,484   80,641 
    Total mortgage loans sold$105,961  $127,399  $132,427  $143,177  $127,897 
                        

    (1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
    (2) Also includes loans originated in a broker capacity.

    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
      At March 31, 2016
      Amortized Unrealized Unrealized Fair
    (Dollars in thousands) Cost Gains Losses Value
    Securities Available for Sale:        
    Obligations of U.S. government-sponsored enterprises $97,151   $160   $(26) $97,285  
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises  249,141    8,322       257,463  
    Obligations of states and political subdivisions  31,025    511       31,536  
    Individual name issuer trust preferred debt securities  29,824        (6,743)  23,081  
    Corporate bonds  1,965    32    (10)  1,987  
    Total securities available for sale  409,106    9,025    (6,779)  411,352  
    Held to Maturity:        
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises  19,040    624       19,664  
    Total securities held to maturity  19,040    624       19,664  
    Total securities $428,146   $9,649   $(6,779) $431,016  
                        


     Period End Balances At
    (Dollars in thousands)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Commercial:         
    Mortgages$976,931   $931,953   $873,767   $876,589   $865,042  
    Construction & development 123,032    122,297    121,857    110,989    89,851  
    Commercial & industrial 598,848    600,297    584,230    595,959    604,630  
    Total commercial 1,698,811    1,654,547    1,579,854    1,583,537    1,559,523  
    Residential real estate:         
    Mortgages 980,274    984,437    994,808    971,705    954,905  
    Homeowner construction 24,075    29,118    29,406    29,558    32,659  
    Mortgages 1,004,349    1,013,555    1,024,214    1,001,263    987,564  
    Consumer:         
    Home equity lines 258,513    255,565    252,862    249,845    239,537  
    Home equity loans 45,499    46,649    47,610    47,437    46,727  
    Other 39,821    42,811    45,378    46,502    47,241  
    Total consumer 343,833    345,025    345,850    343,784    333,505  
    Total loans$3,046,993   $3,013,127   $2,949,918   $2,928,584   $2,880,592  
                             


     At March 31, 2016 At December 31, 2015
    (Dollars in thousands)Balance % of Total Balance % of Total
    Commercial Real Estate Loans by Property Location:       
    Rhode Island, Connecticut, Massachusetts$1,009,962   91.8% $959,883   91.0%
    New York, New Jersey, Pennsylvania 76,721   7.0%  80,989   7.7%
    New Hampshire 13,280   1.2%  13,377   1.3%
    Total commercial real estate loans (1)$1,099,963   100.0% $1,054,249   100.0%
            
    Residential Mortgages by Property Location:       
    Rhode Island, Connecticut, Massachusetts$987,695   98.4% $995,743   98.2%
    New Hampshire 9,517   0.9%  10,186   1.0%
    New York, Virginia, New Jersey, Maryland, Pennsylvania 3,753   0.4%  4,163   0.4%
    Ohio 1,488   0.1%  1,557   0.2%
    Other 1,896   0.2%  1,906   0.2%
    Total residential mortgages$1,004,349   100.0% $1,013,555   100.0%
                    

    (1) Commercial real estate loans consist of commercial mortgages and construction and development loans.  Commercial mortgages are loans secured by income producing property.

    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     Period End Balances At
    (Dollars in thousands)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Deposits:         
    Non-interest bearing demand deposits$464,639  $455,124  $462,115  $419,768  $419,063 
    Interest-bearing demand deposits 74,480   82,174   51,741   37,987   57,983 
    NOW accounts 394,873   412,602   358,973   357,922   333,321 
    Money market accounts 763,565   823,490   855,858   789,334   821,353 
    Savings accounts 331,800   326,967   305,775   300,108   298,802 
    Time deposits (in-market) 540,815   531,419   534,266   549,410   561,758 
    Wholesale brokered time deposits 309,479   302,479   267,552   284,590   290,863 
    Total deposits$2,879,651  $2,934,255  $2,836,280  $2,739,119  $2,783,143 
              
    Asset Quality Ratios:         
    Nonperforming assets to total assets 0.49%  0.58%  0.48%  0.45%  0.48%
    Nonaccrual loans to total loans 0.57%  0.70%  0.57%  0.52%  0.55%
    Allowance for loan losses to nonaccrual loans 150.00%  128.61%  161.25%  182.32%  175.29%
    Allowance for loan losses to total loans 0.86%  0.90%  0.92%  0.94%  0.97%
              
    Nonperforming Assets:         
    Commercial mortgages$4,054  $5,711  $4,915  $4,915  $5,115 
    Commercial construction & development              
    Commercial & industrial 2,659   3,018   1,137   1,039   2,193 
    Residential real estate mortgages 9,367   10,666   9,472   7,411   6,956 
    Consumer 1,345   1,652   1,320   1,766   1,601 
    Total nonaccrual loans 17,425   21,047   16,844   15,131   15,865 
    Property acquired through foreclosure or repossession 1,326   716   955   1,388   1,398 
    Total nonperforming assets$18,751  $21,763  $17,799  $16,519  $17,263 
              
     Three Months Ended
    (Dollars in thousands)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Nonaccrual Loan Activity:         
    Balance at beginning of period$21,047  $16,844  $15,131  $15,865  $15,945 
    Additions to nonaccrual status 1,352   7,029   3,319   2,567   1,608 
    Loans returned to accruing status (206)  (303)  (156)  (1,756)  (366)
    Loans charged-off (1,475)  (904)  (725)  (355)  (321)
    Loans transferred to other real estate owned (610)  (716)    (261)  (230)
    Payments, payoffs and other changes (2,683)  (903)  (725)  (929)  (771)
    Balance at end of period$17,425  $21,047  $16,844  $15,131  $15,865 
              
    Allowance for Loan Losses:         
    Balance at beginning of period$27,069  $27,161  $27,587  $27,810  $28,023 
    Provision charged to earnings 500   750   200   100    
    Charge-offs (1,475)  (904)  (725)  (355)  (321)
    Recoveries 43   62   99   32   108 
    Balance at end of period$26,137  $27,069  $27,161  $27,587  $27,810 
              
    Net Loan Charge-Offs (Recoveries):         
    Commercial mortgages$1,249  $405  $(4) $196  $120 
    Commercial & industrial (18)  217   348   26   (7)
    Residential real estate mortgages 134   117   12   4   46 
    Consumer 67   103   270   97   54 
    Total$1,432  $842  $626  $323  $213 
              
    Net charge-offs to average loans (annualized) 0.19%   0.11%   0.08%   0.04%  0.03%


    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     Period End Balances At
    (Dollars in thousands)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Past Due Loans:         
    Loans 30-59 Days Past Due:         
    Commercial mortgages$510  $51  $147  $14  $497 
    Commercial & industrial 268   405   162   2,581   229 
    Residential real estate mortgages 2,695   3,028   3,610   5,120   4,470 
    Consumer loans 904   1,653   899   1,634   1,512 
    Loans 30-59 days past due$4,377  $5,137  $4,818  $9,349  $6,708 
              
    Loans 60-89 Days Past Due:         
    Commercial mortgages$  $  $  $  $61 
    Commercial & industrial 1,568   9   3,455   2,299   229 
    Residential real estate mortgages 2,026   2,964   2,458   913   1,352 
    Consumer loans 549   863   338   397   565 
    Loans 60-89 days past due$4,143  $3,836  $6,251  $3,609  $2,207 
              
    Loans 90 Days or More Past Due:         
    Commercial mortgages$4,054  $4,504  $4,915  $4,915  $5,115 
    Commercial & industrial 1,070   48   720   638   721 
    Residential real estate mortgages 3,982   3,294   4,499   4,871   3,607 
    Consumer loans 669   740   608   647   723 
    Loans 90 days or more past due$9,775  $8,586  $10,742  $11,071  $10,166 
              
    Total Past Due Loans:         
    Commercial mortgages$4,564  $4,555  $5,062  $4,929  $5,673 
    Commercial & industrial 2,906   462   4,337   5,518   1,179 
    Residential real estate mortgages 8,703   9,286   10,567   10,904   9,429 
    Consumer loans 2,122   3,256   1,845   2,678   2,800 
    Total past due loans$18,295  $17,559  $21,811  $24,029  $19,081 
              
    Total past due loans to total loans 0.60%  0.58%  0.74%  0.82%  0.66%
    Accruing loans 90 days or more past due$  $  $  $  $ 
    Nonaccrual loans included in past due loans$14,030  $13,635  $13,964  $12,397  $12,314 
              
    Troubled Debt Restructured Loans:         
    Accruing troubled debt restructured loans:         
    Commercial mortgages$9,427  $9,430  $10,637  $9,448  $9,448 
    Commercial & industrial 837   853   2,069   2,209   881 
    Residential real estate mortgages 646   669   674   679   684 
    Consumer 226   228   232   201   134 
    Accruing troubled debt restructured loans 11,136   11,180   13,612   12,537   11,147 
    Nonaccrual troubled debt restructured loans:         
    Commercial mortgages 4,054   5,296   4,498   4,498   4,698 
    Commercial & industrial 857   1,371   380   381   1,442 
    Residential real estate mortgages 586   596   613   92   338 
    Consumer          33   34 
    Nonaccrual troubled debt restructured loans 5,497   7,263   5,491   5,004   6,512 
    Total troubled debt restructured loans$16,633  $18,443  $19,103  $17,541  $17,659 
                        

    The following table presents average balance and interest rate information.  Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit.  Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations.  Nonaccrual and renegotiated loans, as well as interest recognized on these loans are included in amounts presented for loans.

    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
      Three Months Ended
      March 31, 2016 December 31, 2015 March 31, 2015
      Average
    Balance
    InterestYield/
    Rate
     Average
    Balance
    InterestYield/
    Rate
     Average
    Balance
    InterestYield/
     Rate
    (Dollars in thousands) 
    Assets:            
    Commercial mortgages $933,939  $8,215  3.54% $885,967  $7,887  3.53% $851,946  $7,717  3.67%
    Construction & development  129,217   1,108  3.45%  134,243   1,004  2.97%  84,302   666  3.20%
    Commercial & industrial  604,519   7,681  5.11%  581,584   6,520  4.45%  608,472   6,930  4.62%
    Total commercial loans $1,667,675  $17,004  4.10% $1,601,794  $15,411  3.82% $1,544,720  $15,313  4.02%
    Residential real estate loans, including loans held for sale  1,031,260   10,155  3.96%  1,049,007   10,338  3.91%  1,030,016   10,314  4.06%
    Consumer loans  343,519   3,393  3.97%  344,690   3,251  3.74%  336,333   3,168  3.82%
    Total loans  3,042,454   30,552  4.04%  2,995,491   29,000  3.84%  2,911,069   28,795  4.01%
    Cash, federal funds sold and short-term investments  68,488   64  0.38%  72,031   37  0.20%  51,058   25  0.20%
    FHLBB stock  25,597   210  3.30%  24,316   315  5.14%  37,730   165  1.77%
    Taxable debt securities  359,060   2,370  2.65%  341,130   2,262  2.63%  322,570   2,259  2.84%
    Nontaxable debt securities  33,313   507  6.12%  35,799   550  6.10%  44,659   664  6.03%
    Total securities  392,373   2,877  2.95%  376,929   2,812  2.96%  367,229   2,923  3.23%
    Total interest-earning assets  3,528,912   33,703  3.84%  3,468,767   32,164  3.68%  3,367,086   31,908  3.84%
    Noninterest-earning assets  240,113      231,674      221,795    
    Total assets $3,769,025     $3,700,441     $3,588,881    
    Liabilities and Shareholders' Equity:            
    Interest-bearing demand deposits $50,704  $13  0.10% $42,324  $11  0.10% $37,851  $8  0.09%
    NOW accounts  386,488   56  0.06%  376,185   56  0.06%  329,588   48  0.06%
    Money market accounts  786,633   515  0.26%  856,405   707  0.33%  800,036   883  0.45%
    Savings accounts  328,174   49  0.06%  310,608   47  0.06%  293,926   46  0.06%
    Time deposits (in-market)  538,035   1,315  0.98%  533,224   1,333  0.99%  567,063   1,469  1.05%
    Wholesale brokered time deposits  296,801   1,020  1.38%  277,681   943  1.35%  294,664   935  1.29%
    FHLBB advances  453,019   2,152  1.91%  373,652   1,966  2.09%  404,773   1,902  1.91%
    Junior subordinated debentures  22,681   112  1.99%  22,681   157  2.75%  22,681   241  4.31%
    Other  79   2  10.18%  92   2  8.62%  128   3  9.51%
    Total interest-bearing liabilities  2,862,614   5,234  0.74%  2,792,852   5,222  0.74%  2,750,710   5,535  0.82%
    Demand deposits  471,782      475,215      438,904    
    Other liabilities  54,287      59,177      48,052    
    Shareholders' equity  380,342      373,197      351,215    
    Total liabilities and shareholders' equity $3,769,025     $3,700,441     $3,588,881    
    Net interest income (FTE)  $28,469     $26,942     $26,373   
    Interest rate spread   3.10%   2.94%   3.02%
    Net interest margin   3.24%   3.08%   3.18%
                    

    Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

    (Dollars in thousands)Three Months Ended
     Mar 31,
    2016
     Dec 31,
    2015
     Mar 31,
    2015
    Commercial loans$554   $489   $442  
    Nontaxable debt securities 180    198    229  
    Total$734   $687   $671  


    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
     At or for the Three Months Ended
    (Dollars in thousands, except per share amounts)Mar 31,
     2016
     Dec 31,
     2015
     Sep 30,
     2015
     Jun 30,
     2015
     Mar 31,
     2015
    Calculation of Tangible Book Value per Share:         
    Total shareholders' equity at end of period$381,280  $375,388  $370,527  $359,167  $353,879 
    Less:         
    Goodwill 64,059   64,059   64,196   58,114   58,114 
    Identifiable intangible assets, net 11,137   11,460   11,793   4,539   4,694 
    Total tangible shareholders' equity at end of period$306,084  $299,869  $294,538  $296,514  $291,071 
              
    Shares outstanding at end of period 17,024   17,020   16,985   16,834   16,773 
              
    Book value per share - GAAP$22.40  $22.06  $21.82  $21.34  $21.10 
    Tangible book value per share - Non-GAAP$17.98  $17.62  $17.34  $17.61  $17.35 
              
    Calculation of Tangible Equity to Tangible Assets:         
    Total tangible shareholders' equity at end of period$306,084  $299,869  $294,538  $296,514  $291,071 
              
    Total assets at end of period$3,838,210  $3,771,604  $3,674,836  $3,644,477  $3,602,514 
    Less:         
    Goodwill 64,059   64,059   64,196   58,114   58,114 
    Identifiable intangible assets, net 11,137   11,460   11,793   4,539   4,694 
    Total tangible assets at end of period$3,763,014  $3,696,085  $3,598,847  $3,581,824  $3,539,706 
              
    Equity to assets - GAAP 9.93%  9.95%  10.08%  9.86%  9.82%
    Tangible equity to tangible assets - Non-GAAP 8.13%  8.11%  8.18%  8.28%  8.22%
              
    Calculation of Return on Average Tangible Assets:         
    Net income$10,935  $10,744  $10,208  $11,503  $11,010 
              
    Total average assets$3,769,025  $3,700,441  $3,678,487  $3,622,715  $3,588,881 
    Less:         
    Average goodwill 64,059   64,194   62,524   58,114   58,114 
    Average identifiable intangible assets, net 11,294   11,616   8,768   4,614   4,770 
    Total average tangible assets$3,693,672  $3,624,631  $3,607,195  $3,559,987  $3,525,997 
              
    Return on average assets - GAAP 1.16%  1.16%  1.11%  1.27%  1.23%
    Return on average tangible assets - Non-GAAP 1.18%  1.19%  1.13%  1.29%  1.25%
              
    Calculation of Return on Average Tangible Equity:         
    Net income$10,935  $10,744  $10,208  $11,503  $11,010 
              
    Total average shareholders' equity$380,342  $373,197  $366,724  $357,365  $351,215 
    Less:         
    Average goodwill 64,059   64,194   62,524   58,114   58,114 
    Average identifiable intangible assets, net 11,294   11,616   8,768   4,614   4,770 
    Total average tangible shareholders' equity$304,989  $297,387  $295,432  $294,637  $288,331 
              
    Return on average shareholders' equity - GAAP 11.50%  11.52%  11.13%  12.88%  12.54%
    Return on average tangible shareholders' equity - Non-GAAP 14.34%  14.45%  13.82%  15.62%  15.27%
                        
    Contact:  Elizabeth B. Eckel
    Senior Vice President, Marketing
    Telephone:  (401) 348-1309
    E-mail:  ebeckel@washtrust.com

    Source: Washington Trust Bancorp, Inc.